First LNG Shipment From Giant Gorgon

Published at 09:21AM - 21/03/16

Chevron makes first LNG shipment from giant Gorgon development, offshore Australia, marking the point the mammoth LNG project gets into full swing.

The giant project reached first production earlier this month, around seven years after construction initially started.

“Departure of the first cargo from the Gorgon Project is a key milestone in our commitment to be a reliable LNG provider for customers across the Asia-Pacific region,” said Mike Wirth, executive VP, Chevron Midstream and Development.

First LNG Shipment From Giant Gorgon

The development’s latest milestone marks point at which it enters full operation; supplying the entire Asia and pacific region and Australia with LNG via its own fleet of specially commissioned ships.

Whilst supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 miles (130 km) and 136 miles (220 km) off the northwest coast of Western Australia; refining, refrigeration and liquefaction occurs at the onshore plant at Barrow Island 53 miles (85km) off the Australian mainland.

Barrow Island includes a 15.6 MTPA LNG plant, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

Wirth added: “This is also important for our investors as we begin to generate revenue from a project we expect will operate for decades to come.”

The first cargo will be delivered to one of Chevron’s foundation buyers, Chubu Electric Power, for delivery into Japan, by Chevron’s own LNG vessel- The Asia Excellence.

Chevron Shipping

The LNG cargo will be delivered by the Asia Excellence, one of Chevron’s new state-of-the-art LNG carriers.

To support Chevron’s growing position as a leading LNG supplier, Chevron Shipping Company is in the final stages of its largest shipbuilding and fleet modernisation program in recent history, which includes the addition of six new LNG carriers to its operated fleet.

Greater Gorgon Development

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3 %), ExxonMobil (25 %), Shell (25 %), Osaka Gas (1.25 %), Tokyo Gas (1 %) and Chubu Electric Power (0.417 %).